New Delhi, April 1 -- Just ahead of US President Donald Trump's reciprocal tariffs coming into force, Goldman Sachs has made gloomy forecasts for the US economy. It now sees a 35% chance of the world's largest economy sliding into a recession in the next 12 months, up from 20% earlier.

This is a result of inflation seen spiking to 3.5% in 2025, up 50 basis points from its last forecast and much above the US Federal Reserve's 2% target, even as unemployment is projected to hit 4.5%.

While a haze over the contours of Trump's tariffs has widened the range of possible outcomes, some analysts worry that his agenda may be less sensitive to America's short or even medium term economic performance in search of the dubious benefits of a protecte...